Vietnam’s shift from a centrally planned to a market economy has transformed the country from one of the poorest in the world into a lower middle-income country. Vietnam now is one of the most dynamic emerging countries in East Asia region.
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Investment enhances Northern Mountains Poverty Reduction ProjectWASHINGTON, D.C., February 27, 2015—The World Bank’s Board of Executive Directors approved $100 million in additional financing for an o... Show More +ngoing project to help improve living standards for poor people in six provinces in Vietnam’s Northwest, the nation’s poorest region.The increased financing bolsters poverty reduction efforts by the Vietnamese government in the provinces of Hoa Binh, Son La, Dien Bien, Lai Chau, Lao Cai and Yen Bai.“We are very pleased to see this additional financing approved by our Board of Directors,” said Victoria Kwakwa, the World Bank’s Country Director in Vietnam. “The project areas have some of the highest rates of poverty, and most of the project beneficiaries are poor ethnic minority communities. We share the government of Vietnam’s strong desire to reduce poverty through the community-driven development approach embedded in this project, and we stand ready to work with the government to scale up the project’s successes.”The additional financing will contribute further to the government’s poverty reduction efforts by improving the capacity of local governments and communities, increasing access to investments that boost productivity, strengthening commune investment planning, and bolstering community links to markets and business innovations.In particular, the project focuses on expanding support for poverty reduction efforts in the six provinces where it started, as well as additional districts and communes.It also seeks to improve local development planning and help make a participatory approach part of the government’s national poverty reduction programs, with a focus on strengthening of partnerships between farmer groups and agro-businesses.The government of Vietnam is providing $10 million in financing in addition to the $100 million from the International Development Association (IDA), the World Bank Group’s concessional lending arm. Show Less -

WASHINGTON, February 4, 2015—The World Bank Group announced the debarment of Louis Berger Group, Inc. (LBG) for one year for engaging in corrupt practices under two Bank-financed projects in Vietnam.&... Show More +nbsp; The Bank also imposed a one-year conditional non-debarment on Berger Group Holdings, Inc. (BGH), LBG’s corporate parent.Under two World Bank-financed projects, the Third Rural Transport and Da Nang Priority Infrastructure Investment Projects, in Vietnam, the company made corrupt payments to government officials. In addition, BGH failed to effectively supervise LBG and thus bears responsibility for LBG’s misconduct.A World Bank inquiry into the company led LBG to conduct its own internal investigation in accordance with terms agreed to by the Bank, uncover the misconduct, and disclose its findings to the World Bank. During the pendency of the investigation, BGH voluntarily restrained from bidding for any other World Bank-financed contracts. “A company’s response to misconduct is clear evidence of where its commitment to integrity lies,” said Leonard Frank McCarthy, World Bank Integrity Vice President. “What this case demonstrates is an investigative process and outcome that has pushed the company to take remedial action toward achieving a stronger standard of compliance and accountability across the board.”Under the terms of the sanctions, LBG and BGH must take appropriate remedial measures to address the misconduct for which they have been sanctioned, and adopt and implement an effective integrity compliance program consistent with World Bank guidelines. Show Less -

SINGAPORE, January 26, 2015 — Almost 200 million people moved to urban areas in East Asia from 2000-2010 – a figure that would be the world’s sixth-largest population for any single country, acco... Show More +rding to new data released today by the World Bank.For the first time, the data compares urban areas and their populations in a consistent manner across East Asia, providing governments and local leaders with a better understanding of the shape and scale of the growth so they can get urbanization right – creating opportunities for all.“Rapid urbanization is a significant challenge for East Asia, but we cannot manage what we cannot measure,” said Axel van Trotsenburg, the World Bank East Asia and Pacific Regional Vice President. “We’re releasing this data so urban leaders can get a better picture and take action to ensure that urban growth benefits the increasing number of people moving to cities, especially the poor.”Analyzed in a new report titled “East Asia’s Changing Urban Landscape: Measuring a Decade of Spatial Growth,” the data indicates that overall, urban areas in East Asia expanded at an average of 2.4 percent per year during the decade studied, with urban land reaching 134,800 square kilometers in 2010.Urban populations grew even faster at an annual average rate of 3.0 percent, increasing to 778 million in 2010 – the largest of any region in the world. Other sources indicate that it took more than 50 years for the same number to become urbanized in Europe.The report finds a direct link between urbanization and income growth, showing how economic output per capita increased throughout the region as the percentage of people living in urban areas went up.The report says that there are 869 urban areas with more than 100,000 people in the East Asia region. They include eight megacities of more than 10 million people: the Pearl River Delta, Shanghai and Beijing in China; Tokyo and Osaka in Japan; and Jakarta, Seoul and Manila. China’s Pearl River Delta has overtaken Tokyo to become the largest urban area in the world in both size and population.At the same time, there was significant growth in smaller urban areas. In fact, the 572 smallest urban areas – with populations of 100,000 to 500,000 – as well as the 106 medium-sized urban areas with populations of 1 million to 5 million, have more total land area than the eight megacities.A notable feature of this expansion is that urban areas are also getting denser on average, which if well managed, can be good for the environment and can lead to more efficient provision of services to people. However, this growth poses a significant challenge due to metropolitan fragmentation, with almost 350 urban areas spilling over local administrative boundaries. In some cases, multiple cities are merging into a single entity while they continue to be administered separately.As urbanization transforms the face of East Asia, governments and local leaders trying to understand and respond have been hampered by a lack of internationally comparable data because countries use differing definitions of urban areas and populations.The new data set was created to address this challenge by using satellite imagery and techniques for modeling population distribution, mapping all human settlements to achieve a common understanding of urbanization trends. This approach can systematically establish where urbanization is occurring, how fast it is happening, and how population growth relates to increases in urban land area.“Once cities are built, their urban form and land-use patterns are locked in for generations,” said Marisela Montoliu Munoz, Director of the World Bank Group Social, Urban, Rural and Resilience Global Practice. “Improving the quality of data to understand trends in urban expansion is important, so that policy makers can make better-informed decisions to support sustainable communities in a rapidly changing environment, with access to services, jobs and housing.”Despite such significant and rapid growth, the data reveals that less than one percent of the total area in East Asia is urbanized, and only 36 percent of the total population is urban – suggesting that the region’s urban expansion has only just begun. While urbanization in the region is largely driven by market forces, policy makers at the national and municipal levels have an important role to play in ensuring that it is sustainable and inclusive:Prepare for future spatial expansion by facilitating access to land so expansion can occur efficiently, using mechanisms such as guided land development, land pooling and readjustment, land sharing and transfer of development rights.Ensure economically efficient urbanization by addressing the entire system of cities through national urbanization strategies, supporting public investments in a range of large, small and medium-sized cities to foster diverse economic activity.Make urbanization inclusive by planning spatial growth to help reduce inequality in access to economic opportunities and address the vulnerabilities of recent migrants.Foster sustainable urbanization by ensuring high-density urban areas are well located, planned and coordinated to produce a walkable, livable environment.Overcome metropolitan fragmentation by coordinating urban services across municipal boundaries, using regional government authorities and other mechanisms.“Getting urban form, density, and administrative coordination right will be essential to help end extreme poverty and boost shared prosperity,” said Abhas Jha, the Practice Manager for the World Bank Group Social, Urban, Rural and Resilience Global Practice.------------------------------EAST ASIA URBAN EXPANSION IN NUMBERS (2000-2010)200 million: East Asia’s newly ur urban population, equivalent to the world’s 6th largest country42 million: Total population of Pearl River Delta, world’s largest urban area – more than Argentina, Australia, Canada and Malaysia2.4 % : Average urban land growth per year1% : Total area of urban land in 201036% : Total urban population in 2010, up from 29% in 2000869: Total urban areas with more than 100,000 people--------This study was made possible through the generous support of Australian Aid.To read the full report, visit: http://www.worldbank.org/eap/measuringurbanexpansionTo view maps and download data, visit: puma.worldbank.org----------------------------------------------------------------------------------------Urban Expansion Data Analysis CompetitionTo further improve our understanding of urban expansion, the World Bank is calling for submissions of (1) data visualization and (2) proposals for a policy research paper, using the new data set introduced in the report “East Asia’s Changing Urban Landscape: Measuring a Decade of Spatial Growth.” For more information, visit: http://www.worldbank.org/eap/measuringurbanexpansion Show Less -

WASHINGTON, December 23, 2014—The World Bank’s Board of Executive Directors today approved US$450 million in loans and credits to the Socialist Republic of Vietnam for the Second Ho Chi Minh City Envi... Show More +ronmental Sanitation Project. The project will improve the environment by treating wastewater, strengthen institutional capacity to manage sanitation and wastewater services, and increase public awareness on the benefits of improved sanitation practices.Ho Chi Minh City (HCMC) is emerging as a major city in Southeast Asia and is a hub of economic activities in Vietnam, contributing to about 20 percent of the country’s total GDP. To maintain its competitive position and provide quality services to its citizens, HCMC plans to develop its water-related infrastructure to increase the supply of drinking water for the growing population, protect the city from floods, and improve the environment and reduce health risks by collecting and treating wastewater.“The Bank has a long standing and strategic partnership with HCMC. Through this new project, the city will be able to address its sanitation challenges in a more cost effective manner and create a city that is clean and competitive,” said Victoria Kwakwa, World Bank Country Director for Vietnam. “Improved urban sanitation services benefit all citizens, especially the poor. This project will ensure that the poor in the project areas are well served by having household connections to the sewer network,” she added.The project will benefit about 1.1 million people in the city and includes a waste water treatment plant that will treat wastewater collected in the Nhieu Loc-Thi Nghe (NLTN) basin and from parts of District 2 of the city. The plant will treat untreated wastewater that is currently being discharged to the Saigon river. Through the project, sewer networks and house connections to the network will be installed in parts of District 2. The project will also provide technical assistance to improve sanitation and wastewater management practices in the city.“The project promotes better sanitation practices in HCMC and also supports the urban development of the city through improved wastewater management,” said Sudipto Sarkar, World Bank Lead Specialist and task team leader. “Under the project an Environmental Learning Center will be created to raise awareness of sanitation issues and the environment that will benefit the people of the Ho Chi Minh City,” he added.The total project cost is US$495 million, of which US$250 million will be financed through a loan from the International Bank for Reconstruction and Development (IBRD) and a US$200 million credit through the International Development Association (IDA). HCMC will provide US$45 million from its own resources for the project. Show Less -

WASHINGTON, December 23, 2014—On December 23, 2014, the World Bank Group announced the debarment of iC Consulenten Ziviltechniker GmbH for a period of one year for submitting false documents while bid... Show More +ding for consulting services in support of the Project Preparation Technical Assistance Facility Subproject for the Ho Chi Minh City Environmental Sanitation Project Phase 2 in Vietnam. During the course of the investigation, the company took disciplinary action against staff involved in the misconduct.“We are pleased with the outcome of this case. The company’s acknowledgement of misconduct and their proactive efforts to address gaps in their compliance culture is a positive and welcome step on their part,” said Leonard McCarthy, World Bank Integrity Vice President. “Fraud is a major risk to development projects and those responsible should be held accountable for their actions.”This debarment is part of a Negotiated Resolution Agreement (NRA) and may be reduced to a period of six months upon satisfactory fulfillment of the World Bank’s Integrity Compliance principles along with evidence of the company’s commitment to changing its corporate compliance culture and cooperation with the World Bank Integrity Vice Presidency. Show Less -

HANOI, December 12, 2014—Vietnam has improved in making land-related information public, but still falls short of legal requirements, according to a new World Bank study.The Land Transparency Study fo... Show More +und that reforms in recent decades have made more information on land issues publicly available, but responsible public officials fail to provide information as prescribed by law in many cases.“Enhancing transparency in land management is critical for more efficient and sustainable use of Vietnam’s land resources,” said Victoria Kwakwa, World Bank Country Director for Vietnam.Despite some improvements, the pace of change lags behind the modest transparency provisions in existing laws. Comparing the results to a similar study conducted in 2010, researchers found that while more information was publicly available—especially in wealthier provinces with better online resources—further progress is required.The study therefore calls for the nation to institutionalize the right to information under law, making full access the norm and requiring exceptions to be listed.“This study will be a source of reference for land management agencies to improve land information disclosure in Vietnam,” said Vice Minister of Natural Resources and Environment Nguyen Manh Hien.For the study, researchers checked all 63 provincial websites and visited government offices in each province as well as 126 districts and 321 communes in late 2013 and early 2014 to ask for legally available information related to land issues.They encountered problems with attitude, capacity and leadership, such as officials who simply refused requests or demanded letters of authorization. At the commune level, officials were unavailable during working hours or said they lacked the requested information.The study includes recommendations for how all localities surveyed can improve their disclosure practices, and all provinces received details of the good disclosure practices that are used in different offices so that they can learn from one another.“All of the recommendations are 100 percent actionable,” said Huong Thi Lan Tran, World Bank Governance Specialist and the report’sco-lead author. “This means that it is clear exactly what a province or district or commune needs to do to improve transparency.”“We hope the practical recommendations in this report will help both central and local level agencies to improve public access to information on land management,” said Jim Carpy, Head of the UK Department for International Development (DFID) in Vietnam.The Land Transparency Study is a part of the Vietnam Transparency Project funded by DFID and implemented by the World Bank.For more information, please visit www.worldbank.org/vnLike us on Facebook: www.facebook.com/worldbankFollow us on Twitter: www.twitter.com/worldbankasia Show Less -

New World Bank Report, Taking Stock, Shows Increase in Vietnamese Economic GrowthHanoi, December 3, 2014 – Early signs show that Vietnam’s economic recovery is on track, says the World Bank’s Taking S... Show More +tock report, released today. Vietnam’s economic growth is expected to improve from 5.4 percent in 2013 to 5.6 percent in 2014.This positive outlook is largely due to the country’s ongoing macroeconomic stability and continued strong performance of the foreign-invested manufacturing export sector. Positive macroeconomic conditions contributed to Vietnam’s improved sovereign risk ratings, enabling US$1 billion of government bonds to be issued on international capital markets on favorable terms.“Vietnam’s potential for much more rapid growth can only be realized if substantial progress is made in addressing distortions such as in the state enterprise and banking sectors, that tax the economy’s efficiency and productivity,” says Victoria Kwakwa, World Bank Country Director for Vietnam. “Stepping up this reform agenda and strengthening the business environment are critical for moving forward.”The report finds that underlying the broad pattern of economic recovery, the performances of foreign-invested and domestic firms remain dichotomous. The foreign-invested sector continues to be a significant source of growth, while the domestic private sector remains subdued, as reflected in the rising number of domestically-owned businesses that have closed or suspended operations. Over the medium term, Vietnam’s macroeconomic outlook is good, with continued modest GDP growth and a further consolidation of macroeconomic stability. The outlook is subject to two key risks: (i) relatively slow progress on SOE and banking sector reforms could adversely impact macro-financial conditions; (ii) adverse turn of events in the global economy could undermine Vietnam’s growth prospects, given the relatively large size of the export sector.The report has a special section on Financial Sector Assessment, which summarizes the major findings of the recent Financial Sector Assessment Program. The report highlights a complex array of institutional and regulatory factors that are responsible for the weak performance of the financial sector. The government has announced a comprehensive reform program designed to address these problems faced. The FSA provides a broad set of policy recommendations that can be used to operationalize the government’s program. Show Less -

Washington, D.C., 17 November 2014 - Seven Vietnamese photographers were recognized in the 2014 CGAP Photo Contest, which aims to highlight stand-out photography depicting financial inclusion around t... Show More +he world. Through strong photography, CGAP showcases the different ways in which poor households manage their financial lives and raises awareness about the importance of formal financial services for people at the base of the economic pyramid. In Vietnam, 79% of the adult population is “unbanked” and lacks an account at a formal financial institution.Vietnam’s Tran Dinh Thuong, who submitted the photo “Traditional,” received a special mention. His photo depicts a woman transporting ceramic pots at a kiln. The judges appreciated the symmetry in the image and remarked that he captured the photo at exactly the right moment. Six additional photographers from Vietnam were designated as finalists in the competition, which received a record number of 4,820 entries from professional and amateur photographers in 95 countries.Overall, East Asia and the Pacific was very well represented in the winning set of images. Fifteen of the 30 winning images were from the East Asian region, including the first prize winner, Soh Yew Kiat of Malaysia. His photo, “Cormorant Fisherman,” depicts a man in China practicing the vanishing craft of cormorant fishing – a traditional technique thousands of years old that involves training birds to catch fish.The judges selected “Cormorant Fisherman” because of the poetic and evocative way it tells a story. Cormorant fishermen, like the one in the photo, are typically involved in the tourism industry and their businesses benefit greatly from easier access to financial services.“The photo captured a timeless image, paired with a modern story,” explained Meghan Dhaliwal, Multimedia Projects Coordinator for the Pulitzer Center on Crisis Reporting. “It’s mythical-looking, and his clothes mirror the shape created by the wings of the bird,” she added.In addition to the compelling story behind the winning image, the judges said it was technically excellent. “The focus is on the fisherman, but the viewer can still see the beautiful details of the background,” said Indira Williams Babic, Senior Manager of Visual Resources for the Newseum.The 2014 Grand Prize is a $2,000 gift certificate for photography equipment.A full gallery of the 30 winning photos can be viewed at www.cgap.org/photocontest.The judges also selected second and third place winners as well as 27 regional winners, finalists, and special mentions, which were chosen for both technical excellence and depiction of the stories and faces behind financial inclusion.The 2014 panel of judges consisted of Indira Williams Babic, Senior Manager of Visual Resources at the Newseum, Jeanette Ortiz-Osorio, Manager of Photo and Digital Assets for The Red Cross, and Meghan Dhaliwal, Multimedia Projects Coordinator for The Pulitzer Center on Crisis Reporting.About CGAPThe Consultative Group to Assist the Poor is a global partnership of 34 leading organizations that seek to advance financial inclusion. CGAP develops innovative solutions through practical research and active engagement with financial service providers, policy makers, and funders to enable approaches at scale. Housed at the World Bank, CGAP combines a pragmatic approach to responsible market development with an evidence-based advocacy platform to increase access to the financial services the poor need to improve their lives. Show Less -

Hanoi, November 12, 2014 – The State Bank of Vietnam and the World Bank today signed a US$ 500 million loan for a US$ 731.25 million operation in support of Vietnam’s energy sector. The investment wil... Show More +l fund construction of over 1,000 kilometers of transmission lines and implement Smart Grid technologies to improve reliability and quality of electricity supply. “Improving energy efficiency is critical for Vietnam’s ability to meet energy demand to power growth and maintain improvements in welfare.” said Victoria Kwakwa, Country Director for the World Bank in Vietnam. “Energy efficiency improvements are also important for reducing Vietnam’s rapidly growing greenhouse gas emissions and contributing to climate change mitigation.” The loan supports a Transmission Efficiency Project, which is expected to improve the capacity, efficiency and reliability of electricity transmission in areas that are key to the country’s economic development, including the Greater Hanoi Area, the Greater Ho Chi Minh City Area, the Mekong Delta, and the Central Region.It will finance transmission lines and substations, constituting about 15 percent of the expected need for transmission network expansion by 2020. The project targets key investment needs in major economic development areas where transmission overloads are already present or are expected in the very near term.In addition, the project will support Smart Grid technologies for monitoring, control, and protection equipment to improve reliability and reduce electricity outages, and help build the capacity of the National Power Transmission Company by supporting its operational and financial independence, as part of a plan to pilot a competitive energy wholesale market by 2015.The total financing requirement of the project is estimated at US$731.25 million, of which US$500 million will be funded by the International Bank for Reconstruction and Development, the World Bank Group’s lending arm for middle-income countries. The remaining US$231.25 million will be financed by the National Power Transmission Company, Electricity of Vietnam. For more information, please visit www.worldbank.org/vn Show Less -

Ho Chi Minh City, October 17, 2014 – This week 24 innovative clean-tech startups graduated from Vietnam’s first-ever Clean Tech Bootcamp. This program helps small- and medium-size enterprises (SMEs) d... Show More +evelop and bring to market innovative clean-energy and energy-efficiency solutions and adaptation technologies in the areas of transportation, agribusiness, and water management.The initiative was developed by infoDev/World Bank’s Climate Technology Program (CTP), in partnership with the Asian Development Bank (ADB), to accelerate the growth of new green businesses in the region and help reduce the significant threats posed by climate change. Vietnam is one of the five most vulnerable countries to climate change in the Asia-Pacific region. In the last 50 years sea level has risen by 50 cm, while extreme climate events (typhoon, flood, landslide, drought, saline intrusion, etc.) have cost the country 9,500 human lives and approximately 1.5% of GDP each year.“Vietnam’s climate-related challenges combined with its rapid economic development call for local innovative solutions,” said Laura Altinger, Senior Environmental Economist at the World Bank Vietnam office. “The development of locally relevant climate tech ventures would not only enable Vietnam to adapt to climate change and reduce emissions, but also to meet energy needs, maintain competitiveness, and minimize its dependence on fossil fuel imports.”The 4-day program of lectures and hands-on workshops gives these innovative entrepreneurs an opportunity to refine their product strategies, business models and marketing pitches; sharpen their negotiating skills; and network with clean-tech entrepreneurs, investors and peers."To tackle climate change, we need to help train innovative and successful climate technology entrepreneurs," said Dr. Aiming Zhou, Senior Energy Specialist at the Asian Development Bank, one of the co-organizers of the training. "A bootcamp like this, which provides intense hands-on support to the most promising emerging climate technology businesses in Vietnam, plays a critical part in making this happen.”With the successful conclusion of the bootcamp, the program will continue to nurture and mentor these and other climate technology SMEs and startups through the Climate Innovation Center (Vietnam CIC). This upcoming business hub is designed to provide a targeted suite of services, including early-stage financing, technology commercialization, business development, and capacity building support. Supported by UKaid and the Australian Department of Foreign Affairs and Trade, the Vietnam CIC will deliver business advisory services and technology commercialization funding to up to 65 climate technology entrepreneurs, including equity investments to 25 companies in the first five years.Through this support, the center is expected to reduce or avoid the equivalent of the annual emissions of 47,000 passenger vehicles (225,000 metric tons of CO2 emissions), improve access to clean water, increase agricultural efficiency, and provide access to renewable or more efficient sources of energy. Overall, the Vietnam CIC will contribute to make one million people less vulnerable to climate change---For more information on the bootcamp and the center, please visit www.infodev.org/climate www.worldbank.org/vn or www.vietnamcic.org Show Less -

Forecast Shows Region to Grow Nearly 7% This Year and NextSINGAPORE, October 6, 2014 – Developing countries in East Asia Pacific will see slightly slower economic growth this year, but the pace of gro... Show More +wth in the region, excluding China, will pick up next year, as the gradual recovery in high-income economies boosts demand for exports from the region, according to the East Asia Pacific Economic Update released today by the World Bank. Still, developing East Asia Pacific remains the fastest-growing region in the world.Developing East Asia will grow by 6.9% this year and next, down from 7.2% in 2013, the report says. In China, growth will ease slightly to 7.4% this year and 7.2% in 2015, as the government seeks to put the economy on a more sustainable path with policies addressing financial vulnerabilities and structural constraints. Excluding China, growth in developing countries in the region is expected to bottom out at 4.8% this year, before rising to 5.3% in 2015, as exports rise and domestic economic reforms advance in the large Southeast Asian economies.“East Asia Pacific will continue to have the potential to grow at a higher rate—and faster than other developing regions—if policy makers implement an ambitious domestic reform agenda, which includes removing barriers to domestic investment, improving export competitiveness and rationalizing public spending,” said Axel van Trotsenburg, World Bank East Asia and Pacific Regional Vice President.While the region as a whole will benefit more than any other region from the recovery of the global economy, the impact will vary across countries, depending on their investment and export environment. China, Malaysia, Vietnam and Cambodia are well positioned to increase their exports, reflecting their deepening integration into the global and regional value chains that have driven global trade in the last 20 years.The report revised the World Bank’s 2014 forecast for Malaysia to 5.7%, up from 4.9% in April, because of robust exports in the first half of the year. Cambodia is expected to grow at 7.2% in 2014, boosted by rising garment exports. Thailand is also expected to benefit from the global recovery, given its strong integration into global value chains – if the respite in political unrest is sustained.But in Indonesia, which still relies on exporting commodities, growth will drop to 5.2% this year from 5.8% in 2013, constrained by falling commodity prices, lower-than-expected government consumption and slower credit expansion.A bright spot for the region’s economies: robust private consumption, supported by various factors such as election-related spending in Indonesia and a strong labor market in Malaysia. In the Philippines, buoyant remittances pushed up private consumption, which accounts for more than half of the country’s overall growth, forecasted to be at 6.4% this year and 6.7% in 2015. Economic growth in Myanmar, with recent institutional and policy reforms and international re-engagement, will be at 8.5% this year and next.Significant uncertainties remain that could affect the region’s growth. High-income economies, especially in the euro zone and Japan, could face downside risks in the near term. Global financial conditions could tighten sharply, and international and regional geopolitical tensions could affect prospects. The region also remains vulnerable to a sharp slowdown in China, which, though unlikely to happen, could hurt commodity producers especially hard, such as metal exporters in Mongolia and coal exporters in Indonesia.“The best way for countries in the region to deal with these risks is to address vulnerabilities caused by past financial and fiscal policies, and complement these measures with structural reforms to enhance export competitiveness,” said Sudhir Shetty, Chief Economist of the World Bank’s East Asia and Pacific Region.The report identifies policy recommendations for different countries to deal with risk and embark on a path of sustainable growth. Mongolia and Lao PDR, for example, need to reduce the fiscal deficit and tighten monetary policy. In Indonesia, Malaysia, the Philippines, and Thailand, measures to bolster revenues and reduce poorly targeted subsidies will help create space for productivity-enhancing investments and poverty-reducing spending, while gradually rebuilding fiscal buffers.In China, as the government seeks to strike a balance between containing growing risks and meeting growth targets, the report indicates that structural reforms in sectors previously reserved for state enterprises and services could help offset the impact of measures to contain local government debt and curb shadow banking.The report also discusses long-term structural reforms that will help countries maximize the benefits from the global recovery. Key reforms include investing more in infrastructure, improving trade logistics, and liberalizing services and foreign direct investment. And, as many education systems in the region aren’t producing skills demanded in the labor market, the report recommends a comprehensive strategy to address issues ranging from early childhood development to higher education and lifelong learning.The East Asia and Pacific Update is the World Bank’s comprehensive review of the region’s economies. It is published twice yearly and is available free of charge at www.worldbank.org/eapupdateVisit us on Facebook: www.facebook.com/worldbankBe updated via Twitter: www.twitter.com/worldbankasia Show Less -

Hanoi, September 17, 2014 – Vietnam has made great strides in expanding social health insurance, now covering more than half of its population, but reforms, such as providing premium subsidies, ... Show More +greater family enrollment and introducing catastrophic cost coverage can help the country reach universal coverage, according to a new report the World Bank released today.“Vietnam has made significant progress toward achieving universal coverage for its population, and the government has made ambitious plans toward reaching that goal.” said Victoria Kwakwa, the World Bank Country Director for Vietnam. “This study shows us how Vietnam can speed up this process in order to ensure a healthy Vietnamese population while reducing the health financial burden on the poor.” The report, Moving Toward Universal Health Coverage of Social Health Insurance in Vietnam: Assessment and Options, offers a comprehensive assessment of Vietnam’s implementation of its social health insurance program, as well as recommendations on key reforms that the country can undertake to achieve universal coverage. During its preparation stage, it already contributed to the dialogue on the revision of Vietnam’s Health Insurance Law. Propelled by higher government spending in health care, the insurance program, which was piloted in 1989, has greatly boosted the number of people with health coverage. In 2010, nearly 60 percent of Vietnamese had health insurance, up from 10 percent in the early 1990s. The Master Plan for Universal Coverage, which was approved in 2012 by the Prime Minister, aims to expand coverage even further, to at least 70 percent of the population by 2015 and 80 percent by 2020. It also sets the goal of reducing patients’ out-of-pocket costs to less than 40 percent of total health care spending by 2015.But challenges remain. Despite large increases in subsidies for the near-poor, low enrollment rates persist, even among those in the formal sector, where enrollment is mandatory. Meanwhile, out-of-pocket costs still made up nearly 60 percent of health care costs in 2010, leaving households vulnerable to financial shocks. To reach the goals set out in the Master Plan, the report recommends reforms in several areas: (1) Further increasing coverage through premium subsidies, greater family enrollment and enforcement of enrollment compliance.(2) Improving equity and financial protection by cutting down on extra charges outside of policy and introducing catastrophic cost coverage(3) Strengthening health financing arrangements by ensuring money is spent more effectively and efficiently on drugs, providers etc.(4) Strengthening accountability by strengthening the organization, management and governance of social health insurance. For more information, please visit www.worldbank.org/vn Show Less -

Hanoi, August 25, 2014 – The World Bank today congratulated Vietnam on the high-level attention to building resilience of vulnerable areas like the Mekong Delta – which are especially impacted by clim... Show More +ate change and disaster risks, as well as Vietnam’s green growth strategy and action plan, and urged the country to forge ahead on a low carbon and resilient growth path.The statements were made during meetings between the World Bank Group Vice President & Special Envoy in charge of Climate Change, Rachel Kyte, and Vietnam State President Truong Tan Sang, and Prime Minister Nguyen Tan Dung."Climate change is a fact. It is intensifying threats to development and growth and there is no benefit in delaying action. Vietnam's leadership in climate action, green growth and building resilience is widely recognized," said Rachel Kyte. "Moreover, Vietnam recognizes the need to coordinate climate action at the highest level and we look forward to continuing to work together to tackle the climate challenge.”During these meetings, the participants discussed several areas of mutual interest, including building resilience in vulnerable areas and sectors. They also discussed bilateral relationship on Climate Change and Green Growth, in which the World Bank official reaffirmed the Bank’s willingness to continue its support to Vietnam, by bringing in both global knowledge and financing.The meetings were part of her visit to Vietnam on August 24-25, 2014 at the invitation of Vietnam’s Minister of Natural Resources and Environment. During this visit, Ms. Kyte attended a High-level Meeting on Climate Change with Deputy Prime Minister Hoang Trung Hai and other high ranking officials. She also participated in a Mekong Delta Roundtable on collaboration amongst development partners, and a dialog with private sector companies on investments opportunities relating to climate changeIn a field trip to Ben Tre Province, she learnt first- hand about the impacts that salinity intrusion and coastal erosion are already having on local economic development, people’s livelihoods, and gained an understanding of the adaptation strategies and coping mechanisms of local communities. Show Less -

Investment aims to construct over 1,000 kilometers of transmission lines and implement Smart Grid technologies to improve reliability and quality of electricity supplyWASHINGTON, D.C., August 7, 2014 ... Show More +– The World Bank’s Board of Executive Directors today approved a loan of US$500 million to the Government of Vietnam to improve the capacity, efficiency and reliability of electricity transmission in areas that are key to the country’s economic development, including the Greater Hanoi Area, the Greater Ho Chi Minh City Area, the Mekong Delta, and the Central Region.The project will finance transmission lines and substations at voltage levels of 220 and 500 kilovolts to increase the transport capacity and reliability of the electric grid. It will finance about 15 percent of Vietnam’s transmission network growth from 2015 to 2020, targeting key investment needs in major economic development areas where transmission overloads are already present or will happen in the very short term.In addition, the project will support Smart Grid technologies for monitoring, control, and protection equipment to improve reliability and reduce electricity outages. At the same time, the project will also help build the capacity of the National Power Transmission Company by supporting its operational and financial independence, in line with the power sector reforms program, which foresees a wholesale competitive market to be piloted by 2015.The total financing requirement of the project is estimated at US$731.25 million, of which US$500 million will be funded by the International Bank for Reconstruction and Development, the World Bank Group’s lending arm for middle-income countries. The remaining US$231.25 million will be financed by the Socialist Republic of Vietnam. Show Less -

The focus of reforms is to strengthen the social assistance service delivery system by reducing the fragmentation of services, improving targeting through building a strong database on recipients, and... Show More + adopting more efficient delivery mechanisms. Particular emphasis is placed on ensuring that poor children get the assistance needed to help achieve their full potential and hence break the intergenerational transmission of poverty.Hanoi, August 7, 2014 – The Vietnam Social Assistance System Strengthening Project was officially launched today, with the goal of developing and piloting innovations in management and service delivery in four provinces in north, central and south Vietnam as a first step towards nationwide implementation. According to Vice Minister of Labour, Invalids and Social Affairs Nguyen Trong Dam: “Despite being a poor country, the Government of Viet Nam has continuously issued new social assistance policies to enable the country to achieve the MDGs, including the goal of reducing poverty. However, there exist too many social assistance policies, creating a huge burden on management systems and difficulties for beneficiaries, leading to low uptake. The current management system has not kept pace with the speed of Viet Nam’s development. Our objective therefore is to build a consolidated and modernized social assistance system which lays the foundation for delivery of social assistance in the long term."The project will consolidate existing database into a national database of poor and near-poor households and social assistance beneficiaries, laying the foundation for program consolidation and improving the effectiveness of public spending on social assistance. In the four pilot project provinces (Hà Giang, Quảng Nam, Lâm Đồng and Trà Vinh), the project will test the strengthened, consolidated cash transfer program by putting existing and new cash transfers for poor households with children and pregnant women into a “family package” which can guarantee income security for poor households in the long run. The program will be delivered through improved management and service delivery systems.“Vietnam has an established system of social assistance cash and in-kind transfers. But the system is not as effective as it could be in addressing Vietnam’s poverty challenges today.” According to Victoria Kwakwa, the World Bank Country Director to Vietnam, "The project aims to support efficiency enhancing reforms to the social assistance system. I sincerely hope that the project will be implemented quickly and successfully and form the basis for scaling up improvements nationwide."The Project supports the Government’s overall objective of poverty reduction through emphasizing the role of social assistance system for enabling poor children to reach their full potential and break the intergenerational transmission of poverty. “I am happy to see that the Government of Viet Nam has prioritised its youngest citizens under the proposed cash transfer”, stated Mr. Jesper Moller, Acting Representative of UNICEF in Viet Nam. “UNICEF views this as a sound economic investment that will better equip the future generations to sustain the country’s rapid development amid demographic change.”In four pilot project provinces, the poor families with children and pregnant women will receive benefits and parenting advice in a timely and accessible manner; local social officers will benefit through simplification of processes and associated reduction in workload; program administrators at the provincial and central level will benefit from enhanced ability to monitor program implementation and support for policy formulation.The project is a product of a partnership involving MOLISA, UNICEF, the UK Department for International Development (DFID) and the World Bank. The funding of US$ 60 million for the Project comes from the International Development Association, the World Bank Group’s lending arm for low income countries on blend terms.---For further information, please contact:Mr. Dang Kim Chung, Director General, Social assistance System Strengthening project,Ministry of Labour-Invalids and Social Affairs, Tel. (84-4) 3933 3038; Email: chungdk@sassp.org.vnMs. Nguyen Nguyet Nga, Senior Economist, World Bank, Tel. (84-4) 3934 6600 ; Email: Nnga@worldbank.orgMs. Nguyen Thi Van Anh, Social policy specialist, UNICEF, Tel (84-4) 3942 5706, ext. 308; Email: ntvananh@unicef.org Show Less -

Hanoi, July 17, 2014 – Vietnam and the World Bank Group announced today that they have agreed to conduct a joint study that will recommend policy actions to greatly increase economic growth in Vietnam... Show More + in the coming years, putting it on a path to become a modern, industrialized country in a generation. The study will identify the changes Vietnam needs to make to build sustainable and inclusive growth and join the ranks of high-income countries.“We look forward to working closely with Vietnam on this joint report and sharing our global experience to help it realize its potential of becoming a high-income country in the decades ahead,” said World Bank Group President Jim Yong Kim. “Vietnam’s leadership can improve the lives of the Vietnamese people even more if they improve the efficiency and competitiveness of its economy and create the conditions for the private sector to become a driving force for job creation, innovation and high-productivity growth that benefits everyone.”The study will look at changes Vietnam needs to boost trade and competitiveness and improve the business and investment climate to attract more foreign and domestic private investment. It will also examine the policies and actions Vietnam will need to build economic sustainability, reform its institutions and create more equality and opportunities for all people. Prime Minister Nguyen Tan Dung and World Bank President Jim Yong Kim agreed to complete the study within one year.“We hope this study will support our strategy to improve people’s lives even more by offering guidance on how to accelerate our economic restructuring and institutional reforms so we can boost growth and provide additional support to the poor,” said Prime Minister Nguyen Tan Dung. “A big focus of the report will be encouraging private sector investment that helps create jobs while ensuring greater equality and inclusiveness for all people.”Dung and Kim announced the study in Hanoi, where they also signed credit agreements for five new projects totaling US$876 million. In addition, Kim announced the World Bank Group will provide Vietnam with over $3.8 billion in concessional financing through IDA, the World Bank’s fund for the poorest countries, in the next 3 years. A key objective will be to help Vietnam use World Bank resources to attract additional private financing. IFC, the World Bank Group member exclusively focused on private sector development, has invested and mobilized more than US$5 billion to support Vietnam’s private sector over the last twenty years.President Kim also met the General Secretary of the Communist Party of Vietnam Nguyen Phu Trong and State President Truong Tan Sang. Over the last few decades, Vietnam has made remarkable progress in reducing poverty. The percentage of people living in poverty dropped from almost 60 percent in the 1990s to under 10 percent today. Over the same period, the mean income for the bottom 40 percent of the Vietnamese population increased by an annual average of 9 percent. Vietnam’s growth rate has averaged 6.4 percent per year for the last decade, but it has begun to slow recently.“Vietnam can return to higher rates of growth if it makes the bold reforms needed in the financial sector and in state-owned enterprises with greater transparency and accountability,” Kim said. “The World Bank Group is committed to supporting Vietnam as it moves ahead with these tough reforms and we truly appreciate our long and trusted relationship with Vietnam.”Kim said Vietnam, like other developing economies, is working with the World Bank Group to tackle climate change and increased extreme weather events, which threaten to roll back development gains over the past decades. He also thanked Vietnam for agreeing to sign on to a call to establish a price on carbon, a global effort that will be released at the United Nations Climate Summit in September.###About the World Bank GroupThe World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 100 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.---For more information, please visit: www.worldbank.org/vnVisit us on Facebook: http://www.facebook.com/worldbankBe updated via Twitter: http://www.twitter.com/worldbankFor our YouTube channel: http://www.youtube.com/worldbank Show Less -

Hanoi, July 8, 2014 – A World Bank report released today indicates that Vietnam’s macroeconomic stabilization performance has continued to improve. Growth remains moderate and continues to come in bel... Show More +ow its potential.Vietnam’s macroeconomic stability continues, enabled by easing inflation, strengthening external accounts, and stabilizing the foreign exchange market. Real GDP is projected to grow at moderate rate of 5.4 percent in 2014, supported by continued foreign direct investment flows and strong manufacturing exports. But domestic demand in Vietnam remains weak on account of subdued private sector confidence overleveraged SOEs, high non-performing loans of commercial banks, and narrowing fiscal space.Vietnam faces several challenges on competitiveness. Reenergizing medium-term growth will require renewed attention on a number of structural reforms – with emphasis on restructuring the country’s state owned enterprises and banking sector and removing barriers to domestic private investment.“Projected growth of 5.4 % is higher than for many of the countries in the region and the world, however it is still below Vietnam’s potential,” says Victoria Kwakwa, the World Bank’s Country Director for Vietnam. “In the short run, the subdued economic growth is linked to soft domestic demand. But longer-term prospects will depend on whether Vietnam can quickly address structural problems that can enhance the economic efficiency and competitiveness of the country.”White the near term outlook seems favorable; risks exist for Vietnam’s economic growth in the longer term. Slow progress in banking system and SOE reform could prolong sub-par growth and create self-reinforcing adverse feedback, possibly resulting in large contingent liabilities for the public sector, bringing public debt to unsustainable levels. Prolonged tension of territorial disputes in the region also weight on downside risk.The Report has a special focus on inequality in Vietnam, as the issue has been a topic of public concern in Vietnam and around the world. Social movements linked to concerns about inequality have unfolded in the wake of the 2008 global financial crisis, and perceptions of rising inequality were among the drivers of the Arab Spring revolutions of 2011.According to Taking Stock, concerns over inequality have arisen despite Vietnam’s rapid long-term growth with only modest increases in income inequality. Mean incomes of the bottom 40 percent of the income distribution grew at 9 percent annually over the 2 decades up to 2012, a tremendous example of shared prosperity. Results from a new perceptions survey reported in the Taking Stock show concern about inequality in Vietnam, especially among urban residents.The concerns over inequality reflect the substantial differences in economic conditions by geography and ethnic group as well as the significant inequality of opportunity. “Opportunity” refers to children’s circumstances which affect their chances of success later in life. Children from poor households are far less likely to attend secondary school and have access to sanitation facilities and healthcare, and much more likely to be malnourished.“Popular concern about inequality and demand for policy responses is likely to grow over time as more Vietnamese move to cities and are exposed to visible differences in welfare,” according to Gabriel Demombynes, one of the report’s authors. “There is already substantial demand for redistributive social policy to narrow inequalities in Vietnam; this demand is likely to persist and to rise as Vietnam continues to urbanize.”---Visit us on Facebook: http://www.facebook.com/worldbankBe updated via Twitter: http://www.twitter.com/worldbankFor our YouTube channel: http://www.youtube.com/worldbank Show Less -

WASHINGTON, June 30, 2014 - The World Bank’s Board of Executive Directors today approved a US$200 million loan and a US$70 million credit for the Government of Vietnam to support power sector reforms,... Show More + climate resilience, and lower carbon intensity development.“These two operations will contribute to Vietnam’s efforts to move towards more environmentally sustainable growth as envisaged in the Socio-economic Development Plan for 2011-2015, by supporting the emergence of a more modern and efficient power market and helping Government to put in place policies across several sectors to enhance the country’s climate resilience,” said Victoria Kwakwa, World Bank Country Director for Vietnam.Vietnam is one of the world’s most vulnerable countries to climate change. Natural disasters and sea-level rise already have significant economic and human costs, with natural disasters alone costing as much as 1.5 percent of global domestic product per year.Of the total, a loan of US$200 million will support the Third Power Sector Reform Development Policy Operation, which supports six policy areas, including the full commercial operation of Vietnam’s competitive generation market; the entry of new generation companies in the market; turning power generation companies into independent companies; and the implementation of regulations to move into a more transparent and predictable electricity tariff system.This operation is the last in a series of three supporting the Government’s power sector reforms which focuses on transparency and competition in the power market, and enhancing efficient use of electricity including through more market based tariffs. With this operation the first phase of the reform program has been successfully completed.The third Climate Change Development Policy Operation (US$70 million) aims to support the Government efforts to address climate change by adopting policies and strengthening institutional capacity to promote climate resilience and lower carbon intensity development. It is the third of a series of three operations of US$70 million each, supporting three pillars, covering policies in better water management, energy efficiency, and policy and institutional development.The credit for the Third Climate Change Operation comes from the International Development Association, the World Bank Group’s fund for low-income countries. The loan for the Third Power Sector Reforms Operation is financed by the International Bank for Reconstruction and Development, the World Bank Group’s financing arm for middle-income countries. Show Less -

Thai Nguyen, June 12, 2014 – A three day conference to discuss sustainable development in the remote Northern mountainous regions of Vietnam began here today. The conference, “Sustainable Development ... Show More +and Ethnic Minority Poverty Reduction in Mountainous Regions”, organized by Thai Nguyen University and the World Bank, aims to discuss opportunities for sustainable poverty reduction in the region drawing from lessons of successful experiences in Vietnam and elsewhere. Participants include government officials at both central and provincial levels, researchers, business people, development partners and practitioners including from other countries. Vietnam’s record on economic growth and poverty reduction over the last two decades has been remarkable, with the poverty headcount falling from 58 percent in the early 1990s to 14.5 percent by 2008, and to an estimated 10 percent in 2010. Ethnic minorities constitute the bulk of the absolute poor in Vietnam. Hence, while ethnic minority poverty was only emerging as a concern in the late 1990s, it is becoming a central focus of the poverty dialogue today. The Northern Mountains, with high levels of poverty and low social development indicators, particularly among ethnic minority communities, are therefore at the center of these discussions. “While ethnic minorities represent less than 15% of Vietnam’s population, they make up almost 50% of Vietnam’s poor,” says Victoria Kwakwa, the World Bank Country Director for Vietnam. “Achieving sustainable reduction in poverty in these communities will require a holistic approach with action across several challenges such as livelihoods and market linkages; natural resource management; and education and health in a more synergistic way.”The three-day conference will discuss current policy and programs targeting ethnic minorities in the Northern Mountains region and explore alternative approaches that can better tailor these programs to achieve greater impact in fighting poverty. A key focus is experience sharing from Vietnam and different parts of the world. The conference also includes site visits to poverty reduction projects to see results on the ground. Show Less -